Top 12 Flood Insurance Myths

Everything you thought you knew about flood insurance...

Given the recent flooding here in Southeastern North Carolina due to tropical cyclone 8 and Western NC from Hurricane Helene, we've heard a lot of flood insurance myths, misconceptions, and rhetoric flying around. Regardless of the size or forecasted strength of a tropical storm, flooding can occur anytime, anywhere. It doesn't even have to be a tropical storm! It could be snow melt, a backed up sewer, or even a spring thunderstorm that causes 5 days of rain. Or it could 10-20" within a few hours.

So, without further ado...

The Top 12 Flood Insurance Myths:

1. A little water can't hurt:
   Oh yes it can! Just one inch of water in a home or business can cause $25,000 in damage.
2. I don't live in a flood zone, so I'm safe and don't need flood insurance:
   Flash floods can occur anytime anywhere. Just because you're not in a federally mandated "flood zone" doesn't mean your area can't/won't flood. Yes, coastal areas are certainly more prone to tidal surge, waves, and unusually high tides, but the pocosin of southeastern NC and rivers can fill up, swell, and spill over into areas that don't normally see flooding. Such is the case when Hurricane Florence devastated our region of North Carolina. It took days and weeks for the water to dissipate in large regions because it had nowhere to go. 

   Notably, the Federal Emergency Management Agency (FEMA) reports that about 40% of flood insurance claims are from areas not designated as high-risk flood zones.

3. My insurance company said I don't need flood insurance:
   A Trusted Agent Advisor will not tell you that you don't need flood insurance. They may look at a map and inform you that you're not in a "FEMA designated flood zone", but they should know full well that flooding can happen to anyone, anytime, anywhere.  Now, your mortgage lender may require you to have flood insurance based upon your proximity to the FEMA Flood Zone. On the flip side, if you're not in a Flood Zone they may also tell you that you are not required to have flood insurance for your loan. There's a big difference in not needing, not wanting, and not required...As the homeowner, it is ultimately up to you to decide what is best for you and your family. If you're not in a Flood Zone, then it may be in your best interest to get flood insurance. It's likely going to be cheaper, but that is a decision that can only be made by you. 
4.  It's never flooded here before, so it probably won't: 
   The "1000 year flood" has happened numerous times throughout the US over the past decade. Weather systems can concentrate over anywhere at any time of the year and produce hours or days of torrential rainfall. The ground saturates and normal outlets and waterways bottleneck leading to quickly rising floodwaters (flash floods). Some examples:
   - September 2013 Boulder, Colorado: 17" in 5 days
   - October 2015 Richland Co, South Carolina: 20" in 5 days
   - April 2023 Fort Lauderdale, Florida: 27" in 12 hours
   - February 2024 Los Angeles, California: 12" in 3 days
   - September 2024 SE North Carolina: 18" in 12 hours
5. I have homeowners insurance to cover my home and everything in it: 
   Your average Homeowners Policy typically excludes flood damage. Flood insurance can be purchased through the National Flood Insurance Program (NFIP). Alternatively, you can buy private flood insurance from providers outside of the NFIP. Contact your insurance broker or agent to help you review available options. Keep in mind that there is typically a 30-day waiting period before coverage starts, so it’s important not to wait until a storm is approaching to purchase a policy. Flood insurance typically covers two main components:
   
   Structure—This can cover the building, including its foundation, roof, walls and attached fixtures, such as electrical and plumbing systems and HVAC equipment.
   
   

   Contents—This can help recoup losses involving personal belongings such as furniture, electronics and clothing.

6. Only hurricanes and tropical storms cause flooding: 
   In all of the cases above (see #4) there was no tropical storm involved. Flooding can occur at any time of the year, not just hurricane season. Floods can also occur due to snowmelt and sewer back ups.
7. Only homeowners can get flood insurance: 
   Renters and commercial businesses can also apply for flood insurance to protect their personal assets.
8. Flood insurance covers basement improvements:
   Finished basements and any furniture, TV's or non-essentials are typically not covered under any policies. Some policies may include hot water heaters, washer/dryers, refrigerator/freezers, and air conditioners that are in the basement.
9. Flood insurance is not available if your property has been flooded:
   You can still buy flood insurance even if your property has flooded in the past.
10. My home is in a new neighborhood and there are plenty of drains and a retention pond so I should be safe from flooding:
    New neighborhoods are especially prone to flood risk for numerous reasons. Anytime hardened structures replace natural soil, the ability for the ground to absorb water decreases immediately. Construction of buildings, roads, and parking lots can increase the risk of flash floods by reducing the amount of rain the ground can absorb. As natural landscapes are replaced by impervious surfaces, surface water runoff increases, which can increase the risk of flooding.
11. Federal disaster assistance will cover me in the event of a flood.
    Federal disaster assistance is only available if the president declares a disaster, and even then, it’s generally in the form of loans that must be repaid, not grants. Flood insurance offers guaranteed coverage for eligible losses.
    
12. Flood insurance is too expensive.
    The cost of flood insurance depends on your area’s flood risk, but many homeowners, especially in low- to moderate-risk areas, find the premiums affordable. NFIP policies can cost as little as $500 a year in lower-risk areas.
    

For more information on flooding associated with hurricane season, check out FEMA’s website below:

https://agents.floodsmart.gov/hurricane-season-in-your-community